In a statement released to E! News on Wednesday, January 16, Michael denies he ever said she was being paid for dates.

"Absolutely NOT! I would never say anything like that," Michael said in a statement to E! News.

"All I DID say when I was arguing with Dina was that Dina was acting like a pimp for allowing and going with Lindsay to an event/personal appearance for money, just so Dina could get her cut!" Michael added. "It's like pimping Lindsay out so Dina can make money! They twisted everything to make it look like I said that! Notice that they said the pimp part BUT then a 'source' said the rest!"

The misquote is a recent stumbling block Linsday Lohan has had in the middle of her attempt to have a comeback in the entertainment industry, which included a role as Hollywood icon Elizabeth Taylor in the Lifetime Television film Liz & Dick." She also poked fun at herself on "Saturday Night Live."

Lohan has an upcoming role in the film "The Canyons" and was profiled on the set of the film by the New York Times in an article called "Here Is What Happens When You Cast Lindsay Lohan in Your Movie."

In the lengthy article, writer Stephen Rodrick describes how "The Canyons" director Paul Schrader tried to reign Lohan in after she did not show up to the first read-through. He fired her and then rehired her and she later showed up late to set and got into an argument with Schrader and refused to film a sex scene for the film until the director stripped down himself and was naked on set.

As for her recent update on her legal woes, the actress pled not guilty on January 15, to misdemeanor charges issued over a summer 2012 car accident which had spurred a judge to revoke her probation.